Thread regarding SAP layoffs

Special Shareholder Meeting 11/12/19 - Beware

When Elliott bought their piece of SAP, they required that Executive team have 8 months to define specifics as to how they will bring the Operating Margin more in line with shareholder expectations and bring this forward in special shareholder meeting in fall.

Since SAP has not been able to accomplish this over the last 20 years, employees should be very aware about what "easy" cuts they will propose (short, mid and long term) to increase profitability to satisfy Elliott and the shareholders. We should be expecting a "not so nice" christmas present - layoffs, here we go again.

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Post ID: @10MX8W2N

13 replies (most recent on top)

The Capital Markets Day -from an investors perspective- was a complete waste of time.
No clarity on SAP‘s future has been provided whatsoever. The only recipes that the absurdly inexperienced CEOs had to offer were efficiency improvement and cost reduction. Hasn’t that failed to improve SAP’s profitability for years?

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Post ID: @10MX8W2N-1iaqk

Expect greatness from MSFT and SAP: http://www.eaconsult.com/2019/11/06/the-ultimate-enterprise-software-alliance-how-sap-and-microsoft-plan-to-take-over-the-enterprise-software-market/

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Post ID: @10MX8W2N-1ccce

https://broadcast.co.sap.com/go/cmd

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Post ID: @10MX8W2N-1camx

greyvine filled with talk on the coming lay-off in Dec. please recommend the deadwood to Salesforce and Workday so that we slow them down by a year

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Post ID: @10MX8W2N-jyex

@10MX8W2N-1zts

there is a saying, if you want to sink your enemy, send them your most expensive and lousiest employees.

we can consider letting some of these heavyweights that are no longer doing the heavy lifting go and join Salesforce or Workday! haha!

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Post ID: @10MX8W2N-hitf

@10MX8W2N-hdjv

I have been in SAP so many years and I have scant heard of this Chief Transformation / Strategy Officer. All the ‘loud’ executive emails are from Bill / Rob / Jennifer / Adaire / Luka.

This guy has been put in the hot seat! If I am him, I would make a quick exit! haha!

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Post ID: @10MX8W2N-hgnz

In a late rush to prepare for the Nov 12 Capital Markets Day SAP has rebadged its former Chief Strategy Officer to now be the Chief Transformation Officer and lead several board-sponsored yet-to-be-named initiatives to keep SAP top-notch.
My take: Too little too late. Investors finally expect results on margin and stock value not another time-wasting set of ‚initiatives‘.

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Post ID: @10MX8W2N-hdjv

Why don’t they just stop paying 102% yearly bonuses. Pay zero this year and at least keep your job.

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Post ID: @10MX8W2N-1qon

Are you sure there will be a need of letting people? With the current rate of people leaving the sinking ship including senior executives, there might be very people left but that time. Just a thought!!!

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Post ID: @10MX8W2N-1zts

@10MX8W2N-ani: SAP is agreeably in a difficult situation. Bill‘s monolithic credo ‚becoming a Cloud company‘ is foreseeably neither appreciated by SAP‘s client base nor is it (imho) ever profitable to the extend promised by Bill and expected by the shareholders. Elliott will surely raise its demands on raising stock price with a strong voice.
It does not need visionary capabilities to see whats coming: More restructuring.

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Post ID: @10MX8W2N-1dww

With all the layoffs, restructuring and constant leaving of top talent. It is a miracle that we aren’t losing more money. Flight risk is at an all time high. No one is safe at SAP.

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Post ID: @10MX8W2N-1enp

I think originally when first requested by Elliott, this was to be a special shareholder meeting in Mannheim in October ( since the operating margin topic has been a sore one for many shareholders for a long time), but you are correct the meeting in Nov in NY is Capital Markets day to update on SAP strategy and give first ideas on the Operational excellence measures.

However in parallel, it is interesting that also in July, SAP informed shareholders not to expect any "big" margin gains until next year/2020 ? I wonder why the "easy " costs like all the unnecessary travel, expensive events ( like the one in Hawaii every year) have not already dealt with and eliminated, assuming these type things are even on the table. For those who were around in 2009 when was the last layoff's were done, was pretty interesting ( and revealing where are the priorities) that the Leadership decided to proceed with sending out thousands to Hawaii and bringing in top entertainment for each of the nights of the event and spending millions and millions on this event, while 4 % of the workforce was getting laid off.

At same time setting the stage for the pressure they are under, earlier this year, there was the 21% decline in operating profit which indicates they still struggle with how to get the costs under control. And 5 % decline in License Revenue, which still represents the overwhelming source of overall revenue for SAP ( about 70%). So already was a failure on the operating profit for this year as these efficiency meetings were happening and drop in long standing License revenue for which SAP has been built and survived on for all these many years, should be a big concern.

I think good advice for everyone to be very aware about what comes out of this operational efficiency task which Elliott has asked for and what ideas the Exec team will propose, for whom they will be and "where" they will ( and won't) be implemented.

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Post ID: @10MX8W2N-ani

You are referring to the ‚Capital Markets Day’ on Nov 12 aren‘t you?
That isn‘t a shareholder meeting by any formal means.
It will however indeed be interesting to see Bill‘s plans to finally fulfill the market‘s expectation for a growing - instead of stagnant or even sinking - margin. I agree that the measures to expect may imply harsh ones.

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Post ID: @10MX8W2N-tob

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